Mexico: Milk production will increase by only 1 percent by 2022

USDA-GAIN FOREIGN AGRICULTURAL SERVICE ANNUAL REPORT. INFORURAL translation. The Mexican dairy market continues to offer growth potential for both US exporters and Mexican producers. Despite the pandemic-related economic crises in 2020, the dairy sector has proven resilient. For producers, having a resilient dairy herd, access to water and substantial domestic feed production have helped continue to increase milk supply and yield. While ongoing macroeconomic challenges, such as rising inflation and unemployment, have slowed household dairy purchases, a growing population, and the ongoing reopening of key sectors, such as tourism, hotels, restaurants and institutions (HRI), are helping to keep the demand for dairy afloat. Production in 2021 is estimated at 12.85 million metric tons (MT). While production in 2022 is forecast at 12.98 million MT, an increase of one percent. Mexico's poor macroeconomic conditions and pandemic-related market shocks led many dairy farmers into ...